WACC: Definition, Misconceptions and Errors

In this paper Pablo Fernandez, professor of finance at IESE Business School in Madrid, shows that the WACC is the rate at which the free cash flows must be discounted to obtain the same result as in the valuation using equity cash flows discounted at the required return to equity.

110 Common Errors in Company Valuations

This paper by Pablo Fernandez and Andrada Bilan, of IESE Business School in Spain, contains a collection and classification of 110 errors seen in company valuations performed by financial analysts, investment banks and financial consultants. The author had access to most of the valuations referred to in this paper in his capacity as a consultant in company acquisitions, sales, mergers and arbitrage processes.

Company Valuation Methods: The Most Common Errors in Valuations

In this paper Pablo Fernandez, professor of finance at IESE Business School in Madrid, describes the four main groups comprising the most widely used company valuation methods. Professor Fernandez argues that the methods that are conceptually correct are those based on cash flow discounting.